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Does your third 2020 or 2019 incentive check use taxes? Everything is complicated



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Your next incentive check may be based on your 2019 or 2020 tax return.

Sarah Tew / CNET

The House of Representatives is now working on a version of President Joe Biden’s $ 1.9 trillion stimulus plan, including one third stimulus check from up to $ 1,400 per person, including dependent personsBut the current timeline for passing the bill would be the IRS processes the following stimulus control in the middle of tax season, leaving many people with questions.

Will the IRS mine Tax return 2019 or 2020 to determine my total payment? What happens if my income has changed in the past year? And what if my third check never arrives, or if money is missing?

We have answers for you according to the most recent proposal for a third stimulus check and how it will be run. Check back regularly for more updates.

Why would my third stimulus check arrive during tax season?

House Speaker Nancy Pelosi said she expects Congress to have a final bill ready for Biden to sign the law on March 14. some unemployment benefits lapseIf Congress follows that timeline (which it can, because of a legislative tool that Congressional Democrats use to push through Republican opposition), a third stimulus check could come during tax season, which lasts until April 15

This makes things a bit more complicated. First, the IRS is already inclusive catch-up incentive money from the first two checks with your tax refund this yearIt also means that the IRS will likely use the tax return they have last on file (more below).


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Will the IRS base my third incentive check on my 2019 or 2020 taxes?

The most recent Democratic Proposal (PDF) states that the IRS would determine your total third-party incentive payment based on your adjusted gross income (AGI) of your Tax returns 2020 or 2019 – what the IRS has on file last at the time of payment.

This can have various consequences. For example, if you made more in 2020 than in 2019, but the IRS uses your return for 2019 (and gives you more incentive money than you may qualify for), then you don’t have to return that money (more below).

The IRS is now accepting tax returns for 2020. For several reasons, we recommend filing your taxes as soon as possible. The sooner you file your taxes, the sooner you will get your tax refund (you can estimate the total hereAnd each missing stimulus money you claimed upon your return. You also get a chance set up direct deposit with the IRS, or fix any errors that may be get you your third stimulus check faster

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Angela Lang / CNET

What if I made more money in 2020, but my check is based on my 2019 taxes?

The most recent proposal (PDF) says the following:

Taxpayers who receive a prepayment that exceeds their maximum eligible credit based on information on the 2021 tax return will not be required to return any amount of the payment to the Treasury. If a taxpayer’s 2021 tax credit exceeds the amount of the advance, taxpayers can claim the difference on their 2021 tax return.

Therefore, for example if you are eligible for the full $ 1,400 based on your taxes for 2020, but the IRS issued your check based on your 2019 taxes, you could claim the difference a year from now on your 2021 tax return – just like the current one Refund Discount in front of missing stimulus check money from the first two rounds.

On the other hand, it also means that if you qualify for the full payment based on your 2019 taxes, but not your 2020 taxes, and the IRS has used your 2019 return, you won’t be the IRS for that. need to pay back. discrepancy.

What happens if my third stimulus check does not arrive or if money is missing?

Once a final bill is approved, if you qualify for a third stimulus check, but yours never shows up direct deposit paper check or EIP card, you probably have to take one more step to claim that money. This happened to millions of people during the first and second round of payments different reasons, including IRS errors, outdated bank information, or addresses, or nonfilers who don’t go the extra mile to get the IRS their information.

As with the first and second check, during tax season you can claim all the missing money from the third check that is owed to you or your family members The next year, 2022. That’s a long way off. The best thing to do now to make sure your third check arrives on time is to file your tax return as soon as possibleeven if you usually don’t have to.

To learn more, read what we know about a third stimulus check, and which we believe qualify This time.


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